- Can You Contribute to an IRA After Retirement?
An IRA (and its corollary, the Roth IRA) is a form of tax-advantaged retirement account that lets you save money during your working years so you can withdraw it during retirement. There is no age limit to contributing to an IRA, meaning that you can do so at any point in life. However, you can only… read more…
- Need Cash From Your IRA Before Retirement? This New Rule Can Help
The costs associated with withdrawing money from a 401(k) or IRA early are well-known. Doing so before age 59.5 means paying a 10% penalty on top of ordinary income tax. However, there is a lesser-known way to avoid this steep penalty when withdrawing money early from a qualified retirement plan. The Internal Revenue Service permits… read more…
- How to Retire at 65: Step-by-Step Plan
The age of 65 is the traditional time when people stop working and retire to live off the fruits of their labor. That doesn’t mean 65 is the ideal age for everyone to retire, though. In order to retire at age 65, you’ll want to evaluate your current assets and their income-producing potential, as well… read more…
- How to Retire at 30: Step-by-Step Plan
For many Americans, the prospect of retiring at or near 30 is a thrilling idea. Although it is possible to do, it takes a monumental amount of work and planning to accomplish. According to a 2021 PWC report and data from… read more…
- This Strategy Can Preserve Your Retirement Savings in a Down Market
The primary risk that retirees and those approaching retirement face is an obvious one: running out of money. However, a study published in the Journal of Financial Planning suggests reverse mortgages can help retirees protect their portfolios from market dips and extend their savings. Rather than relying exclusively on distributions from investments, retirees can temporarily… read more…
- How to Retire With $4 Million
Everyone wants enough money waiting for them in retirement to live comfortably. But if you’re used to a certain lifestyle, you may need a bit more than the minimum amount. A nest egg worth $4 million can provide many retirees with enough money for everyday expenses, as well as general freedom to do what they… read more…
- Understanding Delayed Retirement Credits
Delayed retirement credits, which lead to larger Social Security benefits in the future, can be a financial windfall for individuals who earn them. They may be earned by deferring your Social Security benefits past your full retirement age, something you can do until you turn 70. Delayed retirement benefits are a motivation to go as… read more…
- Why You May Need to Save Twice As Much for Retirement As Your Parents
How much will you need to save before you can retire? It’s a simple question at the root of most people’s plans for their golden years. Answering it, however, can be far more complicated. Using research that reexamined the viability of a popular retirement planning strategy known as the 4% rule, a Morningstar portfolio strategist… read more…
- The Real Reason Index Funds Belong in Your Retirement Portfolio (It’s Not Because They’re Cheap)
John Bogle, the father of index investing and founder of the Vanguard Group, revolutionized the investment industry when his company rolled out the world’s first index mutual fund in 1976. Since then, these passive investment vehicles have steadily grown in popularity, largely due to their consistent returns and low expenses compared to actively managed funds.… read more…
- New Research Shows Why You Should Rethink This Popular Retirement Strategy
Is the 4% Rule no longer a viable strategy for withdrawing retirement savings? That’s the question Morningstar researchers asked when they reexamined this well-known rule of thumb. Developed in the 1990s, the 4% Rule stipulates that a retiree should withdraw 4% of their savings in their first year of retirement and adjust subsequent withdrawals for… read more…
- What Is a Continuing Care Retirement Community?
Most seniors would prefer to stay in the comfort of their own homes. But at a certain point, it just might not be feasible. The average person 65 and older has almost a 70% chance of requiring long-term care, according to the Administration for Community Living (ACL) and the Administration on Aging (AoA). So, it’s… read more…
- You Need to Know This About Phased Retirement
There are several types of retirement just as there are various times to retire. Choosing the right time to retire can be challenging, as it often means balancing your desire to leave work behind with your financial ability to do… read more…
- Pandemic Offers This Silver Lining For Retirement Savers
From doctors visits to business meetings, the COVID-19 pandemic has shifted so many of our everyday interactions from in person to online. One silver lining of this dramatic change has been increased engagement when it comes to people learning about their retirement savings. Transamerica, an investment solutions, retirement and insurance company, has seen a significant… read more…
- Guide to Set Retirement Goals By Age
Too many Americans are unprepared for retirement, according to a PwC analysis. Around a quarter of U.S. adults have no savings at all for retirement, and only 36% are on track. Fortunately, several major brokerages offer age-based benchmarks that folks would be wise to consider as part of their retirement planning. Fidelity Investments, J.P. Morgan and… read more…
- SECURE 2.0 Act: What It Means for Your Retirement
The 2019 Setting Every Community Up for Retirement Enhancement (SECURE) Act brought key changes to laws governing retirement plans. Among other things, the Act eliminated the age cutoff for traditional IRA contributions and increased the age for required minimum distributions… read more…
- U.S. Drops in Global Retirement Rankings: These Countries Do It Better
The U.S. has plenty to improve upon when it comes retirement. While Iceland is rated as the top country for retirement security for the third year in a row, the U.S. dropped to No. 17 in the 2021 Global Retirement Index… read more…
- These Digital Tools Can Help Close the Retirement Gap
It’s fairly common knowledge that many Americans are facing a retirement savings gap. In 2015, the gap between what they needed to have saved and what they’ve actually saved was $28 trillion. But it gets worse: the World Economic Forum now says that the gap is expected to grow to a whopping $137 trillion by… read more…
- How to Retire in the United Arab Emirates
Once organized as separate sheikdoms, the seven emirates of the United Arab Emirates, Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al-Khaimah, Sharjah and Umm Al-Quwain, are now a popular destination for expatriates. In fact, according to the Congressional Research Service, around… read more…
- One-Third of American Workers Are Leaving Free Money on the Table
A 401(k) plan, and other workplace retirement plans like a 403(b) plan, is the most common way for American workers to save for retirement. With Social Security simply not enough to cover expenses for most people and traditional pension plans rarely used anymore outside of the public sector, taking full advantage of your 401(k) is… read more…
- Types of Retirement Explained
The prospect of retirement sparks a myriad of questions about how much you have saved up, where you want to live and when you plan to start. Retirement used to connote a post-work life of leisure on the front porch or golf course, with some travel thrown in. But that might not be the type… read more…
- Retirees Can Beat Inflation With This Investment Technique
When managing your nest egg in retirement, there are a number of decisions to make surrounding which withdrawal rate to use and how to rebalance your portfolio. Perhaps the most key, though, is answering what types of investments should you make after you’ve left the workforce. A major strategic decision in this regard hinges on… read more…
- How to Retire With $5 Million
Even with $5 million saved, managing your retirement nest egg wisely is essential to ensure it supports both your needs and lifestyle goals throughout your retirement years. Proper planning can help that wealth last for 20 to 30 years or more. To make the most of your savings, consider strategies that balance income generation, growth… read more…
- Retirement Plan Options to Consider
Having one or more retirement accounts can help you realize your long-term financial goals, including growing wealth and securing a comfortable retirement. Workplace plans, Individual Retirement Accounts and self-employed retirement accounts are just some of the ways you can save.… read more…
- How Is the Rule of 85 Applied to Retirement?
In place of a 401(k) plan, your employer may offer a defined benefit pension plan for retirement savings. These plans follow different guidelines for withdrawals, including the rule of 85, which governs what type of payment you’re eligible for should… read more…
- How to Start Planning for Retirement
According to a 2022 Employee Benefit Research Institute (EBRI) Retirement Confidence Survey, many people think they’re doing a good job financially preparing for retirement. EBRI found that over seven in 10 workers remain confident in their ability to live comfortably.… read more…